TMI Blog2013 (10) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... of Section 9(1)(vii) of the Income tax Act, 1961 – Held that:- payments made by the applicant to INSEAD for services rendered under the terms of Agreement are not in the nature of "Fees for Technical Services" as it falls under the exclusive clause of Article 12.5(c) of the Treaty though the payment for the service may be fees for technical services under the provision of Section 9(1)(vii) of the Indian Income Tax Act, 1961. Withholding of TDS u/s 195 of the Income Tax Act – Held that:- Payments are held to be not taxable in India there is no case for withholding tax under Section 195 of the Income-tax Act, 1961 - Decided in favor of assessee. - A.A.R. No. 1037 of 2011 - - - Dated:- 20-9-2013 - DR. ARIJIT PASAYATAND T.B.C. Rozara, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... days 4. Teaching through telepresence in Singapore 8 days The applicant shall compensate INSEAD for the cost involved in teaching the entire programme and are the incidental expenses, which will be termed as "INSEAD Cost", the components of which are as under:- S. No. Description Total No. of days Cost per teaching day(in Euros) Total Cost for all interventions (In Euros) 1. Teaching at INSEAD, Singapore 11 days 28,000 308,000 2. Teaching at INSEAD, France 5 days 28,000 140,000 3. Teaching by INSEAD faculty in India 6 days 10,000 60,000 4. Teaching through t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the receipts by INSEAD from ERUDITUS suffer withholding tax under Section 195 of the Act, and if so at what rate? 4. It was submitted that the applicant is a private limited company incorporated and registered in India and has a residence liable to the domestic tax laws of India. INSEAD is a business school established in Singapore and a residence of Singapore for INSEAD purpose. It is registered as a Private Education Institution under the provisions and regulations of the Private Education Act, 2009 in Singapore. It was stated that the applicant is entitled to invoke the more beneficiary provisions as recognized in Section 90(2) of the Income-tax Act and submitted that the provisions of the India-Singapore Tax Treaty shall apply to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... India as "Fee for Technical Services" in terms of the treaty with Singapore. 6. We have considered the rival contention of the applicant and the Revenue. By definition of the curriculum of the programme offered by INSEAD to the applicant, it will be seen that the services rendered involve expertise in or possession of special skill or knowledge that are technical in nature. We agreed with the contention of the Revenue that the payment for the services falls under the broad definition "Fees for Technical Services" both under the Indian Income-tax Act and under the India-Singapore Tax Treaty. However, the case of the applicant will fall in the exclusive clause of Article 12.5(c) of the Agreement for avoidance of the Double Taxation and prev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applies, the provisions of this Act shall apply to the extent they are more beneficial to the assessee. It is a settled position in law now that tax treaty shall override the provision of the Act to the extent the same is beneficial to the applicant. In this case the applicant opted for the provisions of the Tax Treaty as it is found more beneficial to it and we do not find any reason for not allowing it. The payments made by the applicant to INSEAD for services rendered under the terms of Agreement are not in the nature of "Fees for Technical Services" as it falls under the exclusive clause of Article 12.5(c) of the Treaty though the payment for the service may be fees for technical services under the provision of Section 9(1)(vii) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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